Elevate, a Fort Worth-based developer of online credit solutions designed to meet the needs of underbanked and unbanked consumers, said July 26 it has increased its credit facility with investment adviser Victory Park Capital by $100 million for a total of $545 million.
The company will use the additional capital to support the rapid growth of its credit products in the United States and United Kingdom and for further investment in its portfolio of financial products, which include RISE, Sunny and Elastic.
“Elevate has become a clear leader in this space and we are excited to support their growth,” said Tom Welch, principal at Victory Park Capital. “We view Elevate as a best-in-class platform that is mission-driven in providing underserved consumers with transparent and responsible credit products.”
Despite market turmoil in the online lending space over the past few months, Elevate has experienced high consumer demand for its products and year-over-year loan portfolio growth of more than 80 percent since the first quarter of 2015, according to CEO Ken Rees.
“We believe that more responsible nonprime credit products like RISE, Elastic and Sunny are making a positive difference in the lives of our customers who often struggle with limited financial options. This expanded credit facility with Victory Park Capital will help us continue to serve this growing consumer need,” Rees said.
Elevate has originated more than $3 billion in nonprime credit to 1.4 million consumers to date.
The company is privately held and is backed by Silicon Valley venture capital firms, including Sequoia Capital and Technology Crossover Ventures.